Analysis Of Employee Engagement To Improve The
Journal of Education and PracticeISSN 2222-1735 (Paper) ISSN 2222-288X (Online)Vol.7, No.24, 2016www.iiste.orgAnalysis of Employee Engagement to Improve the Performance ofRetail Risk Group PT Bank MandiriArtody Wiseto*Aida Vitayala HubeisDadang SukandarSchool of Management And Business, Bogor Agricultural University, PO box 16151, Bogor, IndonesiaAbstractNowadays, every company require their employees have a bound sense to their company. Its called engagement.Also have that expectation, PT Bank Mandiri (Persero) Tbk, Bank with the largest assets in Indonesia. PT BankMandiri (Persero) Tbk expect which employee engagement can improve the performance such as financial, service,and production process. This study aimed to analyze the correlation between employee engagement and theperformance of PT Bank Mandiri (Persero) Tbk . There are many factors that can be create a sense of belongingis specifically individual, managers, and executives. This study used multiple linear regression to process andanalyze data. Data can be obtained from 68 permanent employees in retail risk group of PT Bank Mandiri (Persero)Tbk. Based on the result, factors individual, managers, and executives significantly affect the performance of PTBank Mandiri (Persero) Tbk.Keywords : Executive, Individual, Manager, Performance1. IntroductionIn the manufacturing sector today, human capital is still essential for most factories to carry out a variety of manualoperations, in spite of the rapid advancement of automation technology and robotics. Futuristic vision of“unmanned manufacturing” (Deen 1993) is forbiddingly expensive, because all its hardware components need tobe computer controlled so as to freely communicate with each other; and yet, most of the outcomes are notpromising (Sun & Venuvinod 2001). By and large, factories equipped with relatively simple machinery controlswill require continuous attendance of human operators; for examples, textile mills, leather products, and medicalappliances. With limited capital investments in production equipment, the main budget of their fixed costs lies onthe workforce size (Techawiboonwong et al. 2006).Employee engagement was first discovered by reseachers named Gallup in 2004. The definition ofemployee engagement by MacLeod and Clarke (2009) is a bound sense of emotionally with the work andorganization, motivated, and able to give the best performance to get a success and benefits to the organizationand individual. Scheimann (2011) also describe that employee engagement is an important contributor in the effortto employee retention, retention, customer satisfaction, and employee performance.Blessing White (2011) indicate there are three factors that influence employee engagement, that is :1. Individuals (I) : Ownership, Clarity, and ActionIndividuals need to know what they want, what the organization need, and then take action to achieve those things.Also Maslach, Schaufelli, and Leiter (2001) in (Kulaar, et al, 2008) said that employee engagement is characterizedby strength, dedication and pleasure in the work. Every employee should to know what their responsibility, withouthaving been ordered by their leader. They need to take the initiative to build their skills and expertise, to articulatetheir interests, satisfy their core values, and identify the ways of applying their talents to achieve the organizationgoals.2. Managers (M) : Coaching, Relationships, and DialogueThe manager must be able to understand every subordinate skills, interests, and necessity, and then match themwith organizational objectives, while at the same time creating the interpersonal relationships, relationships oftrust. Vazirani (2007) said that managers that have engagement will be influence their employees engagementlevel. The development of important skills applied by managers to employees, the goal is to be able to exploretheir potential. Furthermore, the manager should discuss with subordinates to establish good cooperation forachieve their target.3. Executives (E) : Trust, Communication, and CultureThe executives must demonstrate consistency with their words and actions, communications, and coordinate eachindividual with the implementation of the organization for the achieve their target. Every objective and strategyof the company should be clearly presented to employees that useful to the achievement of the desired target. Theexecutives should encourage the result of engagement in any activities of organizations such as reward to eachworker who excellent.Based on many new start up bank in Indonesia, PT Bank Mandiri (Persero) Tbk as the largest bank inIndonesia in terms of assets, must to improve its competitiveness in order to keep remain the number one inIndonesia. PT Bank Mandiri (Persero) Tbk was a merger of four state banks, namely Bank Bumi Daya, BankExport-Import Indonesia, Bank Pembangunan Indonesia, and Bank Dagang Negara. Established on October 2,1998, PT Bank Mandiri (Persero) Tbk has recorded many awards for its performance. One of the award is to be a122
Journal of Education and PracticeISSN 2222-1735 (Paper) ISSN 2222-288X (Online)Vol.7, No.24, 2016www.iiste.orgservice leader from 2007 to 2010 based on a survey MRI (Marketing Research Indonesia).One of the group that owned by PT Bank Mandiri (Persero) Tbk is retail risk group. This group have aduty to reduce the ratio and mitigate possible losses on loans from the debiturs and handle the problematiccustomer credits. The types of products that handled by the retail risk is business banking, micro banking, mortgage,personal loans, and credit cards. Having wide scope make this group have the large number of employees, 4.213employees consisting of 1.787 and 2.436 permanent employees who are employees outsourcing. Theorganizational structure of retail risk group led by department head, and assisted by the center manager, teamleader, relationship managers, implementers, and administrators (Source: Bank Mandiri).Total problematic loans in 2014 that can be handled by Bank Mandiri retail risk group more than 1 trillionrupiah (Source: Bank Mandiri). Certainly, as greater the loans given to customers, as greater potential for doubtfulloans can be happen. This is surely triggers retail risk group to execute the engagement program on every employee.Because of the challenges in the future growing demand loyal employees and tied up with Bank Mandiri.Employee engagement that implemented in retail risk group is expected to be create improvementperformance of Bank Mandiri (Persero) Tbk. Mulyadi (2007) said that the success of the personnel, team, ororganizational units can be realizing the strategic objectives previously set with the expected behavior. While IndraBastian (2006) suggests that the performance is a picture of the achievement from the implementation of an activity/ program / wisdom in realizing the goals, objectives, mission and vision of the organization. This study used abalanced scorecard as a measure of corporate performance. The meaning of balance scorecard based on Munawir(2002) is a scorecard that is used to plan a score that want be realized by someone in the future, and to record theperformance score from the results actually achieved by someone. There are four balanced scorecard perspectives,namely, financial perspective, customer perspective, internal business process perspective, and learning andgrowth perspective.2. Research MethodsData used of this study are primary and secondary data. The primary data obtained from 68 permanent employeesin retail risk group of PT Bank Mandiri (Persero) Tbk at office center Wisma Mandiri, Jl. MH. Thamrin No. 5,Jakarta from various levels. Primary data was taken with questionaire. Secondary data were obtained throughinternal data from retail risk group PT Bank Mandiri (Persero) Tbk, such as the employee key performanceindicators and number of employees. Another secondary data obtained through previous studies, journals, booksrelated study, and other relevant sources.Total number of employees retail risk group PT Bank Mandiri (Persero) Tbk are 4.213 people. Thisamount consists of 1,787 permanent employees and 2,436 outsourced employees. Where 1,575 are employeesstationed in the office center. This amount consists of 593 permanent employees and 982 are employees ofoutsourcing. This research accentuate to permanent employees who work at office center. Based on that data,distributions, percentage and number of respondent of this study can be seen in Table 1.Table 1. Distributions, percentage, and number of respondent of this studyNumber of EmployeesNumber of RespondentPositionPercentage (%)(Ni)(ni)Departement Head7,001,182,00Centre Manager6,001,012,00Team Leader11,001,852,00Relationship 93,00100,0068,00TotalIn this research, processing and analysis data using multiple linear regression. Gujarati (2009) said thatmultiple linear regression as study about the dependence of one variable, that is dependent variable on one or moreother variables (explanatory variable). This aimed to make estimates or predict the average of population or valueof dependent variables to the explanatory variable that have known before it. The same statement said byNarimawati (2008) which describe that multiple linear regression as an association analysis are usedsimultaneously to search two or more independent variables on the dependent variable with the interval scale. So,multiple linear regression is a linear correlation between two or more independent variables (X1, X2, . .Xn) withthe dependent variable (Y). This study determined the direction of corellation between independent variables andthe dependent variable, whether each independent variables have a positive or negative correlation with thedependent variables. Data used in the multiple linear regression generally in interval or ratio scale.Independent variables (x1, x2, x3) are collected by enclosed questionnaire using likert scale. Likert scaleused to measure manner, opinions, and perceptions of person or group of social phenomenon (Sugiyono 2009).Grading scale is from 0 up to 4. Score 0 means strongly disagree, score 1 means disagree, score 2 means quiteagree, number 3 means agree, and number 4 means strongly agree. By using a Likert scale, the variable translatedinto indicators and sub-indicators to be a question or statement that needs to be answered by the respondents.123
Journal of Education and PracticeISSN 2222-1735 (Paper) ISSN 2222-288X (Online)Vol.7, No.24, 2016www.iiste.orgWhile the balanced score card is a method used to measure the performance. After that, the research sample willbe examined with validity and reliability test. Validity test will show a statement filed to the respondents that canbe corresponding with researcher's want. Reliability test is a measure the consistent from the question, if thestatement is given repeatedly to the same respondents, the answer will be the same.The hypothesis test will be concern at parameter estimators. If the hypothesis is rejected, we concludethat the parameter estimators tangible or significant. This test used to know the magnitude that influence eachparameter estimators partially, whether partial coefficient that obtained will have an impact or not on theassumption that the variables are not influence or constant. The hypothesis tested by T test and F test. T test usedto determine the significance of the role each parameter estimators partially. F test parameter testing was conductedto determine the effect of all independent variables that included in the model simultaneously (Nachrowi 2006).Based on conceptual framework, this study aimed to find the effect of employee engagement factors (individual,managers, and executives ) on improvement of performance of the company. The hypothesis of this study is :H0 there is no effect of X variable to Y variableH1 influences of employee engagement that comes from individual job satisfactionH2 influences of employee engagement that comes from the manager on employee job satisfactionH3 influences of employee engagement that comes from on job satisfactionIn this study, the decision that expected is reject H0. It means that there is an influence of employeeengagement factors (individual, managers, and executives ) on the performance of PT Bank Mandiri (Persero).3. Result and Manaferial ImplicationRespondent perceptions about employee engagement variables through individual (X1), managers (X2),executives (X3) as the factors that influence performance (Y), catagorized by score. Based on the data, we can beknown how is respondent perceptions in every variables. Then, compiled the assessment criteria for each itemstatement by category scores with the following steps:1 Total score is the total of each item question that answer from each respondent. The cumulative numberis when all respondents answered strongly agree or get a score, so the cumulative number of the largestis 68 x 4 272. The smallest cumulative number is when all respondents answered strongly disagree, sothe smallest cumulative score is 68 x 0 0.2 Calculate the cumulative number of the largest and smallest on 68 respondents. The largest value ofmeasurement scale is four with the smallest value of measurement scale is zero.3 The mean score is the total score divided by the number of respondent.The largest mean score 272/68 4, while the smallest mean score 0/272 04 Calculate the value rangeValue range the largest score : scale 4:5 0,80Respondent PerceptionsMean y tion :1. 0 – 0,80 Very low2. 0,90 – 1,60 Low3. 1,70 – 2,40 Middle4. 2,50 – 3,20 High5. 3,30 – 4,00 Very HighSome respondent perceptions can be describe the conditions of retail risk group of Bank Mandiri (Persero)Tbk. Respondents believe that employee engagement factors such as individual, managers, and executives give agood effect that improve the performance in this company. Based on Table 2, performance of this companycategorized in high mean score that is 3,140. This mean score can be describe how employee engagement can beinfluence to improve the performance in this company. As high that score as give high influence. Permanentemployees retail risk group of Bank Mandiri (Persero) Tbk. indicates that individual as an employee engagementfactor has 3,026 mean score or in high category. The manager as employee engagement factor have the highestaverage in the amount of 3,303 or in very high category. While executives as a factor in employee engagement has3,092 mean score or in high category.124
Journal of Education and PracticeISSN 2222-1735 (Paper) ISSN 2222-288X (Online)Vol.7, No.24, 2016www.iiste.org3.1 RegressionRegression analysis of this study has coefficient of determination or R-square 66.30 percent. That means that thediversity that able to explained by individual, managers, and executives factors to performance of this companyamounted to 66.30 percent, while the remainder is equal to 33.70 percent is explained by other factors outside themodel. The regression equation of this study i.e :Y 2,643 0,265 X1 0,515 X2 0,305 X3T-test result:Independent 0,021Based on T-test result, individual variable (X1) obtained t-value1,812 with prob value (0.075). Probabilityvalue (0,075) alpha 10 percent, then reject H0. It means individual variables have a significant effect on alpha10 percent to improvement the performance (Y variable). Coefficient value 0,265 means that one increased unitof X1 can be improve the performance of 0,265 unit, ceteris paribus. Managers variable (X2) have probabilityvalue 0,006 alpha 5 percent (reject H0) and one increased unit of X2 can be improve the performance of 0,515unit (coefficient 0,515), ceteris paribus. Then one increased unit of the executives variable (X3) can be improvethe performance of 0,305 unit , ceteris paribus, with probability 0,021 alpha 5 percent (reject H0). The regressionanalysis resulted in the regression coefficient that is BLUE (Best Linear Unbiased Estimator) with assumptionnormality residual, homoskedastisitas, and does not have multicollinearity.Then, F-test used to see how the independent variables in one model influence the dependent variablewhether the regression model significant or not significant. F-test result showed that all of independent variables(individual, managers, and executives) have a significant effect (significant 0,000 alpha 5) to improvement ofthe performance in retail risk group of Bank Mandiri (Persero) Tbk, ceteris paribus. F-test result can be seen inthis figure.The result of this study simulate the management of retail risk group to improve the employee engagementin their company. It used to create sustainable performance improvements. Employee in retail risk group felt thatemployee engagement is one of the important things in the previous years. Moreover, not many candidates willingwork in this group because there is hard jobdesk such as maintain the level of NPL remained low with the all therisk (source : Bank Mandiri (Persero) Tbk). In this condition, retail risk group in Bank Mandiri (Persero) Tbk. hasa great expectations to decrease turnover level and improve the employee engagement of their employees.5. ConclusionBased on the result of this study that conducted to permanent employees retail risk group of Bank Mandiri (Persero)Tbk. in the central office, managers is the largest factor that create an employee engagement. So, to increase theemployee engagement, this company needed managers who have great attention to their subordinates. Allmanagers in this company required to motivated their subordinates, became a mentors, and give a protection fromexternal pressures.Hasibuan (2001) also agreed and said that a good managers capable give some motivation, direction,guidance, counseling, management, modelling, and being honest. It made the subordinates are willing to worktogether more effectively to realize the company’s goals. If the influence of managers is large, the individu willget enthusiatic to improve their performance. Also with the executives that will be more generous to its employeeswhen their company's performance improved. Improved performance of retail risk group of Bank Mandiri (Persero)Tbk. can be seen from the data internal of Bank Mandiri (Persero) Tbk. From 2012 to 2014 the company'sperformance in NPL probability decreased, so it can be said the performance of the Bank Mandiri (Persero) Tbkincreased.In present study, it can be conclude as follows : the performance condition’s of retail group is fairly good,it can be seen from creditability business banking, mortag, personal loans, and credit card that increase in eachperiod. Moreover, from collectability level, good performance can be seen from customer service, internalbusiness process, learning and growth. But, there are an error of targeting financial and learning and growth, therewas a crisis that can not be predicted at time of the determination the target. In the following years, evaluationwas conducted by management of Bank Mandiri (Persero) Tbk. proven four balanced scorecard prospective showspositive results. All the sets target management of bank mandiri achieved.Obstacle encountered in the implementation of employee engagement is the work pressure felt by some125
Journal of Education and PracticeISSN 2222-1735 (Paper) ISSN 2222-288X (Online)Vol.7, No.24, 2016www.iiste.orgemployees, it causing less comfortable I the work, but all of it can be overcome by the high level of commitmentand the high dedication. Another obstacle is in order to creating an environment of engagement is rejecting thatcomes from some employees. That is because there are a few employees in their comfort area and do not want tomove.There are some factors that support employee engagement in retail risk group of Bank Mandiri (Persero)Tbk composed on individuals, managers, and executives. Individuals improve motivate to work better than before.The manager contributes to improving the performance of their subordinate. While the executive give such rewardto best employees who help improve the performance of group.The impact of employee engagement to improvement retail risk bank mandiri is quite large. Employeeengagement contribute 66.3 percent to improved performance. The remaining 33.7 percent is the contribution ofthe other factors.ReferencesBastian Indra. 2006. Akuntansi Sektor Publik: Suatu Pengantar. Jakarta (ID): ErlanggaGujartati D N. 2006. Dasar-dasar Ekonometrika Jilid I dan II. Jakarta (ID): Erlangga.Hasibuan Malayu. 2001. Manajemen Sumber Daya Manusia. Jakarta (ID): Bumi Aksara.Macleod, David, Clarke, Nita. 2009. Engaging for Success: enhaning performance through employee engagement.Mulyadi. 2007. Sistem Perencanaan & Pengendalian Manajemen (ed.3) Koran. Jakarta (ID): Salemba Empat.Munawir S. 2002. Analisa Laporan Keuangan. Edisi Keempat. Cetakan Kedelapan. Yogyakarta (ID): LibertyNachrowi, Djalal Nachrowi, Hardius Usman. 2006. Pendekatan Populer dan Praktis Ekonometrika untuk AnalisisEkonomi dan Keuangan. Jakarta (ID): Lembaga Penerbit Universitas IndonesiaNamirawati, Umi. 2008. Metodologi Penelitian Kualitatif dan Kuantitatif, Teori dan Aplikasi. Bandung (ID):Agung Media.Schaufelli, Salanova, Gonzalez, dan Bakker. 2001. The Measurement of Engagement and Burnout: a Two SampleConfirmatory Factor Analytic Aproach. Journal of Happiness Studies. Kluwer Academic Publishers,Netherland.Scheimann, William A. 2011. Aligment, Capability, Engagement: Pendekatan Baru Talent Management untukMendongkrak Kinerja Organisasi. Penerjemah: Setyo Untoro. Jakarta (ID): Penerbit PPM.Sugiyono. 2009. Metode Penelitian Kuantitatif, Kualitatif dan R&D. Bandung (ID): Alfabeta.Vazirani N A. 2007. Employee Engagement. Working Paper for the SIES College of Management Studies, orking papers/employee engagement.pdf[online:September 2012]First A. Author (M’76–SM’81–F’87) and the other authors may include biographies at the end of regular papers.Biographies are often not included in conference-related papers. This author became a Member (M) of AssociationXXXX in 1976, a Senior Member (SM) in 1981, and a Fellow (F) in 1987. The first paragraph may contain aplace and/or date of birth (list place, then date). Next, the author’s educational background is listed. The degreesshould be listed with type of degree in what field, which institution, city, state, and country, and year degree wasearned. The author’s major field of study should be lower-cased.Second A. Author (M’76–SM’81–F’87) and the other authors may include biographies at the end of regularpapers. Biographies are often not included in conference-related papers. This author became a Member (M) ofAssociation XXXX in 1976, a Senior Member (SM) in 1981, and a Fellow (F) in 1987. The first paragraph maycontain a place and/or date of birth (list place, then date). Next, the author’s educational background is listed. Thedegrees should be listed with type of degree in what field, which institution, city, state, and country, and yeardegree was earned. The author’s major field of study should be lower-cased.126
Journal of Education and PracticeISSN 2222-1735 (Paper) ISSN 2222-288X (Online)Vol.7, No.24, 2016www.iiste.orgConceptual Frame Work127
balanced scorecard as a measure of corporate performance. The meaning of balance scorecard based on Munawir (2002) is a scorecard that is used to plan a score that want be realized by someone in the future, and to record the performance score from the results actually achieved by someone. There are four balanced scorecard perspectives,
Employee Engagement network members were asked to refine employee engagement to 6 words. Perhaps this was the experience of an employee or the directions for an organization or manager. Over 120 members of the network authored their 6 word employee engagement story. Thank you to all the employee engagement network members for their
employee engagement around the globe. This e-book was created from a forum at the Employee Engagement Network. Join us today at www.employeeengagement.ning.com January 19, 2010 David Zinger is the founder and host of the expanding Employee Engagement Network. He is a global employee engagement expert and leader living in Winnipeg, Canada.
1. What is employee engagement? Employee engagement has been growing in prominence in recent years. Driven by mounting evidence of the link between employee engagement and positive outcomes, it has increasingly been seen as a priority for employers.1 There are a variety of de!nitions of employee engagement. Some see it as an attitude held by
means that more research on employee engagement needs to be done. Therefore, this study aims to explore employee engagement which are predicted to be affected by rewards, work environment and work-life balance. 2. Literature Review 2.1 Employee Engagement Employee engagement is one of the main problems that each organization tries to maintain among
force for consistent, positive change. Here you’ll learn about the core elements of a successful employee engagement program. The Essential Guide to Employee Engagement . The Essential Guide to Employee Engagement At DISH Network, employee surveys
What is "Employee Engagement"? Employee engagement is the extent to which employees feel passionate about their jobs, are committed to the organization, and put discretionary effort into their work. There are two primary factors that drive employee engagement. These factors are based on statistical analysis and widely supported by industry .
of engagement, as opposed to focusing on “engagement for engagement’s sake.” Source: Corporate Leadership Council research. Engagement Drivers * Rational commitment to the job was not measured due to its similarity to rational commitment to the team, direct manager, and organization. CLC’s Employee Engagement Survey
Contents v The macro-view: a look at how the policy makers are getting involved with employee engagement 217 Conclusion 222 09 The future of employee engagement 223 Introduction 223 Predictions for the future of employee engagement 223 Views on the future of engagement from thought leaders 229 Summary 239 Conclusion 240 References 242 Further reading 248 Index 249
